SS&C Technologies Holdings, Inc. (Nasdaq:SSNC), a global provider of investment and financial software-enabled services and software, today announced its financial results for the quarter ended September 30, 2011.
"I am very pleased by our top-line revenue growth, in particular, the 17.5 percent increase in software-enabled services," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc. "Our record Q3 2011 revenues reinforce our customer-focused strategy as they partner with us to innovate in technology, mobility, and cloud-based services. Today we also launched a radio campaign on Bloomberg to highlight our strong fund administration business."
The Company reported quarterly revenue of $94.3 million for the third quarter of 2011, compared to $83.0 million in the third quarter of 2010, an increase of 13.6 percent.
GAAP operating income for the third quarter of 2011 was $24.1 million, or 25.5 percent of revenue. This represents a 23.0 percent increase compared to GAAP operating income of $19.6 million and 23.6 percent of revenue in the third quarter of 2010. GAAP net income for the third quarter of 2011 was $14.9 million compared to $9.9 million in the third quarter of 2010, an increase of 51.2 percent.
On a fully diluted GAAP basis, earnings per diluted share in the third quarter of 2011 were up 38.5 percent to $0.18 compared with $0.13 in the third quarter of 2010.
Adjusted operating income (a non-GAAP measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the third quarter of 2011 was $37.6 million, or 39.9 percent of adjusted revenue. This represents a 15.3 percent increase compared to adjusted operating income of $32.7 million and 39.3 percent of adjusted revenue in the third quarter of 2010.
Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the third quarter of 2011 was $22.6 million compared to $17.2 million in 2010's third quarter, a 31.9 percent increase.
Adjusted diluted earnings per share (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) in the third quarter of 2011 were $0.28 compared to $0.23 in the third quarter of 2010, an increase of 21.7 percent.
Annual Run Rate Basis
Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $82.8 million for the third quarter of 2011, an annual run-rate of $331.4 million. This represents an increase of 14.8 percent from $72.1 million and $288.6 million annual run-rate in the same period in 2010 and an increase of 2.3 percent from Q2 2011's $81.0 million and $323.8 million annual run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility into future revenue.
In the third quarter of 2011, SS&C acquired Dublin-based BDO Simpson Xavier Fund Administration Services Limited, a company owned by BDO. This company is now known as SS&C Fund Services Ireland Limited. The addition of the regulated, fully staffed and operational office in Dublin provides SS&C entry into the strategically important European regulated funds market, providing support for additional fund structures, including UCITS and QIF funds.
Operating Cash Flow
SS&C ended the quarter with $76.2 million in cash and cash equivalents, and $172.7 million in debt for a net debt balance of $96.5 million. We generated net cash from operating activities of $71.6 million for the nine months ended September 30, 2011, compared to $47.6 million for the same period in 2010, an increase of 50.3 percent.
SS&C announces the following financial guidance for the fourth quarter and fiscal year 2011:
Guidance Q4 2011 FY 2011
Total Revenue ($M) $94.0 -- $97.5 $369.0 -- $373.0
Adjusted Net Income ($M) $22.2 -- $23.1 $85.3 -- $86.2
Cash from Operating Activities ($M) N/A $87.0 -- $90.0
Capital Expenditures (% of revenue) N/A 2.1% - 2.3%